Green Climate Fund

$500 million*

Minimum Requirement for American Leadership

 
The Green Climate Fund (GCF) was established in 2010 by the global community to assist developing countries to reduce carbon emissions and increase resilience to climate change.

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Justification for Funding

  • The GCF is the world’s largest climate-specific development fund, focused on projects with “transformative” impact with significant economies of scale. Central to the GCF’s design is its “Private Sector Facility” to leverage private dollars.
  • The GCF has a broader base of contributors compared to other funds and a policy of funding a 50/50 split between adaptation and emissions reduction projects.
  • The GDF has had a global impact.
    • In Eastern Africa, $10 million was matched by others to create a $200 million equity fund to finance off-grid solar power in Rwanda and Kenya where 70% of the population lacks access to grid electricity.
    • In Latin America, $215 million loan guarantee was matched to create a $700 million energy efficiency green bond focused on small- to medium-sized energy firms to reduce greenhouse-gas emissions by 13 million tons annually.

Cost of Cuts Below $500 Million

President and Congress Budget Comparison

       Congressional Budget   

       President's Budget Request (Base + OCO)

  • Climate-friendly economic development doesn’t happen on its own. Many developing countries now stand at the crossroads between high-carbon and low-carbon futures, and the GCF is designed to help countries chart a path toward sustainable societies.
  • The initial U.S. pledge to the GCF in 2014 leveraged billions in contributions from both developed and developing countries. Were the U.S. to stop funding the GCF altogether, it could jeopardize pledges from other countries, as well.

 

$750 million

Opportunity to Catalyze American Leadership

 

Justification for Additional Funding

  • Greenhouse gas emissions are continuing to rise, making the globally-agreed target of keeping atmospheric temperature below 2°C more and more difficult to achieve.
  • The GCF is working to develop the next generation of transformative, large-scale climate investments by working with the private sector and other donors. 
  • The GCF is the preeminent global fund helping to confront the challenge of climate change.
  • By 2050, 50 million more people – equivalent to the population of Spain – will be at risk of going hungry because of climate change.
  • By 2050, there could be 25 million more malnourished children under the age of five compared to a world without climate change – that’s the equivalent of every child under the age of five in the U.S. and Canada combined.

Impact of 50% More Funding

A 2017 GCF Request for Proposals shortlisted 30 projects (from 350) with the potential to leverage more than $3 million in private capital per dollar invested by the GCF.

  • Every dollar pledged by the U.S. to the GCF has attracted billions in additional funding by other donor nations. Additional U.S. funds will, in turn, leverage substantial new commitments. In short: where we lead, others follow.
  • The GCF’s future success will be proof-positive that the world can build low-carbon economies that protect the world’s poorest and most vulnerable.
  • If the U.S. turns its back on the GCF – and its historic mission – this critical work becomes all the more imperiled.

*FY17 Senate Approved Appropriation

For more information, please contact: Lindsey Doyle, ldoyle@interaction.org

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